European Venture Funding Halved In Q2 2023 As Late-Stage Investors Dialed Back

European venture funding in Q2 2023 was down 50% from the previous year, totaling $12.4 billion, according to Crunchbase data. This decline aligns with the funding reset in North America, but the younger and potentially more vulnerable European startup ecosystem could be more affected by a downturn. Germany, the UK, and France were the largest markets for venture capital, with 18% of global venture capital invested in Europe-based startups.

In terms of sectors, European AI companies raised $1.5 billion, representing 12% of the continent's funding. Late-stage funding saw the largest decline, falling 64% YoY, while early-stage funding declined by a third and seed-stage funding was flat QoQ. Public-private funds remained active during the downturn, with Bpifrance, High-Tech Gründerfonds, and the European Innovation Council among the most active investors.

Key takeaways:

European venture funding decreased by 50% in Q2 2023 compared to the same period in 2022, with a total of $12.4 billion invested.
European AI companies raised $1.5 billion in Q2 2023, representing 12% of the continent’s funding.
Early-stage funding declined by a third compared to the same time frame a year ago, settling around the $5 million mark.
Seed-stage funding was flat quarter over quarter, just shy of $2 billion down from $2.8 billion in Q2 2022.

European Venture Funding Halved In Q2 2023 As Late-Stage Investors Dialed Back

Key takeaways:

Comments (0)

Newsletter